The Company commenced operations on August 25, 2011, subsequent to raising sufficient funds to meet escrow break requirements. For the three months ended September 30, 2012, BDCA acquired 34 individual investments at a total cost of $67.9 million and received proceeds of $39.2 million from loan repayments and the sale of certain investments. The Company realized gains of $0.3 million in connection with those sales. BDCA generated portfolio net investment income of $1.7 million, excluding realized gains and losses, during the three months ended September 30, 2012. During the same period, the Company paid distributions of $1.5 million.

For the nine months ended September 30, 2012, BDCA acquired 67 individual investments at a total cost of $148.3 million and received proceeds of $62.7 million from loan repayments and the sale of certain investments. The Company realized gains of $0.9 million in connection with those sales. BDCA generated portfolio net investment income of $3.1 million, excluding realized gains and losses, during the nine months ended September 30, 2012. During the same period, the Company paid distributions of $2.5 million.

"We are pleased to report another strong quarter of operations for BDCA," stated Peter M. Budko, President and Chief Operating Officer of the Company. Mr. Budko noted, "We continue to fully cover our dividend from net investment income rather than investment gains and new equity. Our portfolio continues to be of high quality, with approximately 81 percent of our assets invested in senior secured loans. With continued unease in Europe and other economic concerns, we believe that BDCA's strategy of originating and participating in well structured, senior loans to middle market U.S. companies provides investors with attractive risk-adjusted returns."

Portfolio Highlights (dollar amounts in thousands):

September 30, 2012

December 31, 2011

Investments, at fair value

$ 102,048

$ 14,271

Net asset value per share (1)

$ 9.44

$ 9.00

Weighted average effective yield (2)

8.16%

10.79%

Number of portfolio investments

44

34

Number of industry groups

16

18

______________________

(1)

Net asset value per share and common shares outstanding for the year ended December 31, 2011 have been adjusted to reflect a special common stock distribution of $0.05 per share declared on March 29, 2012.

(2)

Includes the effect of the amortization or accretion of loan premiums or discounts.

Net unrealized appreciation (depreciation) on investments and total return swap

1,711

(23)

Net assets

92,680

8,207

Total liabilities and net assets

$

126,126

$

16,250

Net asset value per share *

$

9.44

$

9.00

*Net asset value per share and common shares outstanding for the year ended December 31, 2011 have been adjusted to reflect a special common stock distribution of $0.05 per share declared on March 29, 2012.

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(Unaudited)

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2012

2011

2012

2011

Investment income:

Interest income

$

1,959

$

62

$

3,677

$

62

Other income

14

—

63

—

Total investment income

1,973

62

3,740

62

Operating expenses:

Contract termination fee

—

320

—

320

Interest and credit facility financing expenses

192

26

420

51

Professional fees

137

—

364

—

Directors fees

18

—

57

—

Insurance

51

—

154

—

Management fees

402

7

730

7

Incentive fees

572

37

968

37

Other administrative

35

101

75

251

Expenses before expense waivers and

reimbursements from Adviser

1,407

491

2,768

666

Waiver of management and incentive fees

(798)

(44)

(1,522)

(44)

Expense support reimbursement from Adviser

—

(571)

(266)

(571)

Total expenses net of expense waivers and

reimbursements from Adviser

609

(124)

980

51

Net investment income

1,364

186

2,760

11

Realized and unrealized gain on investments:

Net realized gain from investments

344

—

926

—

Net realized gain from total return swap

390

—

390

—

Net unrealized appreciation on investments

1,184

—

1,154

—

Net unrealized appreciation on total return swap

580

—

580

—

Net realized and unrealized gain on

investments

2,498

—

3,050

—

Net increase in net assets resulting from

operations

$

3,862

$

186

$

5,810

$

11

Per share information - basic and diluted*:

Net investment income

$

0.16

$

1.26

$

0.55

$

0.17

Net increase in net assets resulting from

operations

$

0.47

$

1.26

$

1.15

$

0.17

Weighted average common shares outstanding

8,297,178

147,598

5,042,363

64,473

*Per share information - basic and diluted and weighted average common shares outstanding for the three and nine months ended September 30, 2011 have been adjusted to reflect a special common stock distribution of $0.05 per share declared on March 29, 2012.

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

ADJUSTED PORTFOLIO NET INVESTMENT INCOME

(in thousands)

(Unaudited)

The difference between our GAAP net investment income and our portfolio net investment income is due to the inclusion of realized gains from our total return swap ("TRS") in portfolio net investment income, which represents the interest income received from the underlying loans in the TRS offset by interest paid to Citibank, N.A. to finance such loans, and the net realized gains or losses from the sale of the underlying loans in the TRS. We subsequently remove the net realized gains or losses from the TRS to determine adjusted portfolio net investment income. The following table sets forth a reconciliation between GAAP net investment income and adjusted portfolio net investment income during the nine months ended September 30, 2012 and 2011 (dollars in thousands):

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2012

2011

2012

2011

GAAP net investment income

$

1,364

$

186

$

2,760

$

11

GAAP realized gains on total return swap

390

—

390

—

Portfolio net investment income

$

1,754

$

186

$

3,150

$

11

Less realized gains on total return swap

44

—

44

—

Adjusted portfolio net investment income

$

1,710

$

186

$

3,106

$

11

Distributions paid

$

1,500

$

-

$

2,511

$

-

Undistributed adjusted portfolio net

investment income

$

210

$

186

$

595

$

11

Distributions declared

$

1,706

$

26

$

3,087

$

26

This announcement may contain certain forward-looking statements, including statements with regard to the future performance of BDCA. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings BDCA makes with the SEC. BDCA undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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